If You're Behind on Student Loan Payments, Your Wages Could Be Garnished Soon

Student loans that are in default will go to collections starting May 5. Getty Images/CNET Starting in two weeks, defaulted student loans will be sent to collections, the US Department of Education announced Monday. Borrowers in default and hoping for debt forgiveness should take action before collections resume on May 5. "The Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear," Education Secretary Linda McMahon said in the press release. If you're behind on payments, it's important to reach out to your lender for options. Lenders can report loans as delinquent after they're 90 days past due, which can damage your credit score. Loans that are 270 days past due go into default, which comes with even more severe consequences. "It's only defaulted loans that are at risk of wage garnishment, tax refund offset, Social Security garnishment and collection costs," Betsy Mayotte, ... Read full article.